Effective 28 Aug 1972

247.150. Bonded indebtedness, how refunded — refunding bonds, conditions imposed. — 1. Any public water supply district now or hereafter organized under the laws of this state is hereby authorized, without an election, to refund all or any part of the bonded indebtedness of such district at the time outstanding, including interest thereon.

2. Where the bonds being refunded consist of general obligation bonds payable from ad valorem taxes levied upon all taxable property situated in the district, the refunding bonds issued to refund such general obligation bonds shall be payable from ad valorem taxes levied upon all taxable property situated in the district.

3. When the bonds being refunded consist of special obligation bonds payable from the net income and revenues arising from operation of the waterworks system of such district, the refunding bonds, issued to refund such special obligation bonds, or any interest thereon, shall likewise constitute special obligation bonds and shall be payable from such net income and revenues arising from the operation of the waterworks system of the district.

4. All refunding bonds of any public water supply district shall be negotiable and shall be payable not later than the date for the final payment of the original former bonds for which such refunding bonds are issued and for which refunding bonds are delivered in exchange, except that the last installment of any special obligation refunding bonds issued for previously issued special obligation bonds shall be payable up to, but not more than, thirty-five years from the date of such special obligation refunding bonds. The refunding bonds shall bear such rate of interest, not exceeding eight percent per annum, payable annually or semiannually, and shall be in such denomination and be payable at such place or places as the board of directors may determine; provided, however, that the interest rate on the refunding bonds shall not exceed the interest rate on the bonds being refunded where such bonds are general obligation bonds payable from ad valorem taxes, but such interest rate may exceed the interest rate on the bonds being refunded if such bonds are special obligation or revenue bonds and not payable from ad valorem taxes. In no case shall the amount of the debt of such district be increased or enlarged under the provisions of this section.

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(L. 1943 p. 519 § 12638A, A.L. 1972 H.B. 1506)

CROSS REFERENCE:

Bonded debt of counties, townships, etc., may be funded, question to be submitted, how, 108.140 to 108.160